REHAB for unconditional black money investment at 10pc tax for up to 10 years

Business Desk :
The Real Estate and Housing Association of Bangladesh (REHAB) has proposed to allow black money investment opportunities in the housing sector at a 10% tax with no questions asked.
The association demanded this facility for the next five to ten years during the pre-budget discussion held at the Revenue building in Agargaon of the capital on Tuesday.
The government has been giving black money investment opportunities for a long time now.
Previously, in the financial year 2021-22, the government allowed unconditional investment of black money in any sector including housing for only a 10% tax. Not only that, a legal provision was added that neither the tax department nor any other department can raise questions about the source of that money. As a result, a record amount of black money was turned white in that financial year.
Later, in the face of heavy criticism from different quarters, the government kept the facility but allowed the provision of asking for the source of the money in fiscal 2022-23.
Regarding the demand, National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem noted that providing such facilities every year will only encourage injecting more black money into the economy.
He said, “You want to continue this facility for five years. Then black money would continue to enter the economy and people would continue to buy houses.”
Shohel Rana, vice president of REHAB, said that a lot of money these days is being laundered abroad from the country due to the opportunity to buy second homes in different countries. Moreover, no questions are raised when buying property there.
“If this opportunity [to invest black money] is provided in the country, these investors will come under the future tax rate. If this benefit is given, national wealth and growth will pick up the pace,” he said.
REHAB also proposed reducing the existing registration fee in the housing sector from the existing 12.5% to 7%, fixing the tax rate at 3.5% to strengthen the secondary market in this sector, reducing VAT by one-third, and cutting the source tax of the land owner from 15% to 4% among others.